Trump says Apple to invest 'hundreds of billions' in US
What's the story
US President Donald Trump has announced that tech giant Apple is gearing up for a massive investment in the US. The President credited this development to his administration's tariff policies, which he thinks are bolstering the American economy. The announcement came during a meeting with US governors at the White House, where Trump revealed his recent conversation with Apple CEO Tim Cook about the huge investment plan.
Investment details
Trump's conversation with Cook
During the meeting, Trump said, "Yesterday I had Tim Cook in the office from Apple, he's investing hundreds of billions of dollars. That's what he told me. Now he has to do it." The announcement came a day after his meeting with Cook. However, the Apple CEO has not yet publicly confirmed any such investment plans for the US market.
Production relocation
Apple's manufacturing shift from Mexico to US
Trump also revealed that Cook has promised to move Apple's manufacturing from Mexico to the US. He said, "Cook stopped two plants in Mexico" and will now produce in the US. While it is still not clear which particular Apple plant Trump influenced Cook into shutting down, a Bloomberg report indicates it could be a Foxconn facility.
Tariff effects
Trump's tariff policies and their impact on businesses
Trump has leveraged tariffs as a trade weapon, slapping 10% duties on Chinese goods and threatening to do the same on items such as semiconductors, cars, and pharmaceuticals. His administration thinks these increased costs will force companies to produce in the US. However, critics say tariffs could mean higher prices for consumers. During his first term, Cook got iPhones exempted from tariffs due to his relationship with Trump.
Indian operations
Apple's production in India and potential tariff impact
Currently, Apple makes some 15% of its iPhones in India, a number expected to rise to about 25% by 2027, analysts from JPMorgan and Bank of America said. The effect of Trump's reciprocal tariffs on iPhone manufacturing in India is still unclear. A Bank of America analysis indicates Apple may have to increase its prices by about 9% to counter the effect of Trump's tariffs.